Schering AG Issues Profit Warning

German drugmaker Schering AG, despite posting a 27% increase in netprofits of 364 million Deutschemarks ($213.6 million) for the nine months to end-September, has issued a profit warning for 1998. The firm's chief financial officer, Klaus Pohle, told a press conference that he foresees full-year 1998 profit growth in single-digit percentage numbers. This news sent Schering shares down 7.80 marks to 163 marks.

Sales for the period rose 21% to just under 4.7 billion marks, with fertility control products (helped by the acquisition of Jenapharm and Leiras in the second half of 1996) contributing 1.58 billion marks and up 35%, therapeutics 1.41 billion marks and 38% higher, diagnostics 1.2 billion marks (-4%), dermatology 317 million marks (+4%) and other areas of the business a further 199 million marks.

Betaferon/Betaseron (interferon beta-1b) has been Schering's top-selling product since 1996. Turnover in Europe increased from 110 million marks to 221 million marks, but in the USA sales dropped off 14% to 235 million marks, due to increased competition. Worldwide, sales of the product were 502 million marks, a rise of 27% on the like, 1996 period. The USA and Latin America were particularly good for Schering's fertility control products, it says, while its diagnostics business continued to be exposed to pricing pressures.